Unclear auto bailout can pass Senate: Chrysler CEO

DETROIT (Reuters) - Chrysler Chief Executive Bob Nardelli said on Thursday it was unclear whether the proposed U.S. auto industry bailout can pass the U.S. Senate and urged employees to lobby lawmakers to support the plan.

The House of Representatives approved a proposed $14 billion bailout Wednesday night, but the Senate has always been seen as a tougher hurdle. Senate Republicans have expressed deep opposition to the plan.

In a letter to employees, Nardelli called the House approval an important positive development but said it was "still unclear at this point whether there are the necessary 60 votes in the Senate required for the bill's passage."

Chrysler and General Motors Corp have said they must have emergency loans to continue operating into early next year. Ford Motor Co has sought a line of credit that it could tap if the industry downturn becomes worse than expected or if its rivals fail.

Nardelli urged employees to press the case for government loans, which he said would enable Chrysler to build on recent improvements and fund future products.

"We have a clear plan to return to viability that includes many new fuel-efficient vehicles with strong consumer appeal; and with the support of the bridge loan, Chrysler plans to emerge from the current economic downturn and generate adequate cash to begin repayment of the loan in 2012," he said.

Chrysler is more than 80 percent-owned by Cerberus Capital Management.

The House and Senate must pass an identical measure before it can be sent to President George W. Bush to be signed into law.

The White House was pressing skeptical Republicans in the Senate on Thursday to back the bailout legislation. The bill appears to be falling short of the 60 votes needed to overcome procedural obstacles in the Senate.

The loans are intended to carry the companies through March 31, after which more help would depend on the quality of restructuring plans demonstrating their viability.

(Reporting by Soyoung Kim and Kevin Krolicki, writing by David Bailey; editing by John Wallace)